scholarly journals Estimating cost efficiency of Turkish commercial banks under unobserved heterogeneity with stochastic frontier models

2016 ◽  
Vol 16 (4) ◽  
pp. 127-136 ◽  
Author(s):  
Hakan Gunes ◽  
Dilem Yildirim
Keyword(s):  
Cost Efficiency ◽  
Commercial Banks ◽  
Unobserved Heterogeneity ◽  
Stochastic Frontier ◽  
Stochastic Frontier Models

scholarly journals Total Factor Productivity Decomposition and Unobserved Heterogeneity in Stochastic Frontier Models

2015 ◽  
Vol 44 (1) ◽  
pp. 124-148 ◽  
Author(s):  
Magnus A. Kellermann
Keyword(s):  
Total Factor Productivity ◽  
Productivity Growth ◽  
Unobserved Heterogeneity ◽  
Statistical Tests ◽  
Stochastic Frontier ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
Nested Models ◽  
Relative Contribution ◽  
Stochastic Frontier Models

This study examines in an empirical comparison how different econometric specifications of stochastic frontier models affect the decomposition of total factor productivity growth. We estimate nine stochastic frontier models, which have been widely used in empirical investigations of sources of productivity growth. Our results show that the relative contribution of components to total factor productivity growth is quite sensitive to the choice of econometric model, which points to the need to select the “right” model. We apply various statistical tests to narrow the range of applicable models and identify additional criteria upon which to base the choice of non-nested models.

scholarly journals Evaluating Bank Cost Efficiency Using Stochastic Frontier Analysis

2019 ◽  
Vol 11 (3(J)) ◽  
pp. 48-57
Author(s):  
Sanderson Abel ◽  
Alex Bara ◽  
Pierre Le Roux
Keyword(s):  
Interest Rates ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Banking Sector ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Banking System ◽  
Frontier Analysis ◽  
Doing Business ◽  
The Cost

The study seeks to assess the cost efficiency of the commercial banks in Zimbabwe using the stochastic frontier analysis. The cost efficiency of the Zimbabwean banks is estimated using the trans-log stochastic frontier approach. The Stochastic Frontier Analysis methodology is among the host of methods that has been used to measure banking sector efficiency. The analysis of cost efficiency of commercial banks has important implications for the economy since an efficient banking system has potential to reduce interest rates which can lead to increased investment and growth for the economy. The cost of doing business in Zimbabwe is perceived to be high hence improved bank efficiency has the potential to reduce the cost of doing business. The average cost efficiency scores for the Zimbabwean banks over the study period show that the banking sector in Zimbabwe experiencing 17 percent inefficiency. The efficiency levels have been declining over the years reflecting increased resource wastage in the system. The study recommends that the banking institutions should continue to innovate so as to reduce their inefficiencies.

scholarly journals Regulatory Impact of Bank Performance in Nigeria: Application of Stochastic Frontier Analysis

2017 ◽  
Vol 4 (4) ◽  
pp. 32 ◽  
Author(s):  
Mustapha A. Akinkunmi
Keyword(s):  
Cost Efficiency ◽  
Commercial Banks ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Empirical Work ◽  
Frontier Analysis ◽  
Total Cost ◽  
Regulatory Impact ◽  
The Cost ◽  
Input Prices

This study employs a panel dataset on the cost efficiency of Nigerian commercial banks to test the hypothesis whether internal regulation from the monetary authority affects the performance of commercial banks. The empirical work is carried out through the use of stochastic frontier analysis on 14 commercial banks over 10 years. The study finds that regulation has a negative and significant influence on the total cost while bank output, input prices and bank size have a positive and significant effect. This implies that the large the bank size, the higher total cost incurred.

scholarly journals Relationship Between Cost Efficiency and Stock Price: Evidence from Bangladeshi Commercial Banks

2021 ◽  
Vol 8 (2) ◽  
pp. 1
Author(s):  
Chinmoy Das Gupta
Keyword(s):  
Stock Prices ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Stock Price ◽  
Stock Exchange ◽  
Stochastic Frontier ◽  
Efficiency Score ◽  
Share Prices ◽  
Cost Efficient ◽  
The Cost

This paper employs Stochastic Frontier Approach (SFA) and Data Envelopment Analysis (DEA) to measure cost efficiency score of 30 listed private commercial banks in Dhaka Stock Exchange (DSE) and finds its influence on stock prices. Results suggest that, there is a significant impact of changes in share prices on the cost efficiency score. This suggests, those banks are most cost efficient, they are able to generate more return for their stockholder than those of inefficient banks. 

scholarly journals ANALISIS TINGKAT EFISIENSI BIAYA BANK UMUM SYARIAH DENGAN METODE STOCHASTIC FRONTIER ANALYSIS PERIODE 2015-2018

2020 ◽  
Vol 7 (1) ◽  
pp. 199
Author(s):  
Devy Ariesta Putri ◽  
Sylva Alif Rusmita
Keyword(s):  
Commercial Bank ◽  
Cross Section ◽  
Cost Efficiency ◽  
Commercial Banks ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Islamic Banking ◽  
Frontier Analysis ◽  
The Cross ◽  
The Cost

This study aims to determine the cost efficiency level of Sharia Commercial Banks registered in the OJK for the 2015-2018 period. This study uses a quantitative approach. This study uses a parametric approach to measure the cost efficiency of Islamic banking with the stochastic frontier analysis (SFA) method. The value of cost efficiency using the SFA method is in the form of a value of 100%, the closer it is to the value of 100%, the more efficient the bank works. The analysis technique used is the cross-section model and panel model. This study uses 7 Sharia Commercial Bank samples. Data obtained from each of the Sharia Commercial Bank Financial Report websites. The results of the Cross-Section Stochastic Frontier Analysis analysis on cost efficiency show the average value of the efficiency of Islamic banking in Indonesia approaching 95.92%. The results of the cost-efficiency analysis show that Islamic banking in the 2015-2018 period tended to be less efficient in controlling costs.Keywords: Cost efficiency, Islamic commercial banks, Stochastic Frontier Analysis (SFA).

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